REG - Pantheon Resources - Lease Award

Pantheon ResourcesAnnouncement

01/06/2023 07:00

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RNS Number : 2591B  Pantheon Resources PLC  01 June 2023

 

 

1 June, 2023

 

Pantheon Resources plc

Lease Award

Upcoming Webinar

 

Pantheon Resources plc ("Pantheon" or "the Company"), the AIM-quoted oil and
gas company with a 100% working interest in all of its oil projects spanning
c. 193,000 acres adjacent and near to transportation and pipeline
infrastructure on the Alaska North Slope ("ANS"), is pleased to announce that
it has formally accepted and paid for the award by the State of Alaska
Department of Natural Resources (DNR) for the 39,540 acres that it was the
successful bidder of in last year's state lease sale. The Company awaits
formal granting of the leases from the DNR, expected in the near term, subject
to standard formalities.

 

25,460 acres of this award is the northern extension (the Chimney) and updip
portion of our Theta West Basin Floor Fan. 14,080 acres of the award fills in
around Pantheon's Alkaid and Talitha Units along the Dalton Highway and Trans
Alaska Pipeline. The new acreage covers an extension of the existing
discoveries which Pantheon was able to delineate off its existing proprietary
3D seismic. Whilst a full evaluation of this new acreage is ongoing, Pantheon
expects an upgrade in its resource base from this addition of new acreage in
due course. In December 2022, SLB completed phase 1 of its Static and Dynamic
reservoir model where it ascribed 10.9 billion barrels of oil in place to the
portion of the Basin Floor Fan ("BFF") complex within Pantheon's existing
leases. The extension into this new acreage was not part of the original SLB
estimates.

 

The BFF resources in this additional acreage are structurally higher, or
'updip' from the Theta West #1 discovery well. Being structurally higher in
shallower reservoir depths yields an expected improvement in the reservoir
properties because of less compaction due to a shallower Dmax (Maximum Depth
of Burial). The expected improvement in reservoir qualities should lead to
increased recovery and better reservoir productivity. The Company intends to
test the BFF reservoir in these new leases at a depth of approximately 6,200
feet, some 750 feet higher than where it was discovered in Theta West #1, in
the next Theta West appraisal well. Shallower drilling targets reduce drilling
costs and, combined with expected higher productivity, should enhance the
economics of any development in this location. The Theta West #1 well
demonstrated that the Company's pre-drill expectation for the northern extent
of the accumulation was likely too conservative and hence the move to secure
the additional leases in what should prove to be the best quality resources in
this giant discovery.

 

SLB will incorporate these additional resources into their models, and
Netherland Sewell & Associates will incorporate these additional resources
into their assessment of Contingent Resources on the Theta West and Alkaid
projects, expected over the summer (Theta West), autumn (Alkaid), which will
represent the first independent assessment of the recoverable resources
identified by Pantheon's appraisal programmes over the past two and a half
years.

 

Webinar

 

A webinar is scheduled for late June/early July to present an overall plan for
Pantheon and the following:

 

1.    Discussion on Pantheon's corporate strategy to deliver greater value
out of its significant resources including a discussion of corporate and
operational initiatives.

2.    Discussion on scope for potential resource upgrades associated with
this additional (new) acreage.

3.    Discussion on findings from further analysis of Alkaid #2 and the
Company's assessment of ultimate recoveries based on Alkaid #2 production and
potential for future wells.

4.    Discussion on initiatives for improvements to operational performance
and cost control, including an introduction to recent key hires. The
discussion will include an analysis of well cost of Alkaid #2 and steps to
work towards a targeted $13 million cost per development well.

5.    Discussion on Frac design improvements based on Alkaid #2 results.

6.    Discussion on data expected from the re-entry completion and
production test at the SMD horizon at Alkaid #2.

 

The Company will provide an update at a later date regarding the date for the
webinar.

 

Jay Cheatham, CEO of Pantheon Resources, said: "Pantheon will soon have c.
193,000 acres under lease with a material resource base in the billions of
barrels. In the past we have limited our public profile to reduce competition
for offset acreage while we acquired the current acreage position. Pantheon
and its predecessor Great Bear have made significant investments over the past
decade securing this vast acreage position, assisted through the advantage of
having sole use of c. 1,000 square miles of high quality 3D seismic. Having
now secured the desired acreage, Pantheon now intends to increase the profile
of its project geology without fear of competition and to assist in attracting
potential farm-in partners. This process commenced last week where AHS/Baker
Hughes presented a case study using the Theta West volatiles analysis to the
Society of Petroleum Engineers (SPE) Western Regional Meeting in Anchorage. We
will also begin participating in other relevant industry meetings to raise the
profile of the assets."

-ENDS-

Further information, please contact:

 

 Pantheon Resources plc                                       +44 20 7484 5361
 Jay Cheatham, CEO
 Justin Hondris, Director, Finance and Corporate Development

 Canaccord Genuity Limited (Nominated Adviser and broker)
 Henry Fitzgerald-O'Connor                                    +44 20 7523 8000

 James Asensio

 Gordon Hamilton

 BlytheRay
 Tim Blythe, Megan Ray, Matthew Bowld                         +44 20 7138 3204

 

 

 

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies
- June 2009, the information contained in this announcement has been reviewed
and signed off by Robert Rosenthal, a qualified Petroleum Geologist, who has
over 40 years' relevant experience within the sector.

 

 

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
several large projects located on the North Slope of Alaska ("ANS"),
onshore USA where it has a 100% working interest in 193,000 highly
prospective acres with potential for multi billion barrels of oil recoverable.
A major differentiator to other ANS projects is its close proximity to
transport and pipeline infrastructure which offers a significant competitive
advantage to Pantheon, allowing for materially lower capital costs and much
quicker development times. The Group's stated objective is to create material
value for its stakeholders through oil exploration, appraisal and development
activities in high impact, highly prospective conventional assets, in
the USA; a highly established region for energy production with
infrastructure, skilled personnel and low sovereign risk. All operations are
onshore USA, with drilling costs materially below that of offshore wells.

 

 

 

 

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